California Real Estate Practice Exam

A corporation deed signed by its president and secretary is adequate to pass marketable title if:

1. all assets of the corporation are included in the transfer

2. the deed is executed in connection with the dissolution of the corporation

3. the transferor is a religious organization

4. it is within the ordinary scope of the corporation’s business

The correct answer is: all assets of the corporation are included in the transfer

The correct answer is A because when a corporation deed is signed by its president and secretary, it is considered adequate to pass marketable title if all assets of the corporation are included in the transfer. This ensures that the transfer is comprehensive and that the new owner receives clear and marketable title to the property without any outstanding claims or issues. Options B, C, and D are not relevant to the adequacy of passing marketable title in this context. A deed executed in connection with the dissolution of the corporation (Option B) does not guarantee that all assets are included in the transfer. The fact that the transferor is a religious organization (Option C) or that the transfer is within the ordinary scope of the corporation's business (Option D) does not necessarily ensure that all assets are being transferred, which is crucial for passing marketable title.